The Company is engaged primarily in the assembly and distribution of digital apparel printers and related supplies, including ink, for the garment decoration industry.
The Company’s flagship product was an entry level printer targeted to small garment decorators.
The Company introduced a new product line aimed at larger/corporate accounts. The product launch timeline was expedited as a competitor was introducing a competing product in the same timeframe.
In the field, the Company’s product did not perform to standard and the Company implemented a voluntary upgrade program to address customer problems and to refurbish the units, which severely affected profitability and cash flow over the next two years.
The Company hired an investment bank to market the Company for sale, but the lender was concerned about their collateral position and ability to operate towards a close.
FDP prepared a financial forecast and 13-week cash flow analysis to assure the lender that the Company was solvent and their senior position was properly collateralized.
FDP continued to monitor cash flow and assisted the Company in preserving liquidity to operate while the sale process consummated.
FDP was able to convince the senior secured lender to continue financing the Company during the sale period, despite poor financial performance and repeated delays of the transaction date.